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Buying a home and two cars?

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Anonymous
Not applicable

Buying a home and two cars?

Hello!
My husband is getting out of the military. Since we are getting out, we want to buy a house when we move and also get two cars. I have good credit (739). We own one car right now but will need two because I will be working and he will be doing part school and work. We are thinking about selling the current car. Then with the money and extra money we have, we planned on putting a down payment on the new cars. Then anything we couldn't pay would be our monthly payments.. I was hoping to not exceed 300 per car. I was also going to use the VA home loan so I do not need to put a down payment on the house we buy but instead use the extra money for furniture and repairs. I was wondering if this is a good idea to purchase two cars at once and a home, or if I should stagger the different purchases out, if I should buy one first over the other. I have rented previously, paid multiple utility bills, internet bills, credit cards, and now the phone bill and auto/renters insurance is under my name. I have always paid on time. I think I have a decent amount of credit built up enough to be approved for car loans or buy a car, but I am not sure how that works with two at once. What steps should I take to end up with two cars and a house within a matter of a few months?
Thanks!
Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: Buying a home and two cars?

If you currently have a car, I'd say for you to wait on the " potential two new cars" until you get the house.  If you get the cars, that debt will be use to calculate your DTI which can impact your borrowing ability.

 

So get the house and go from there.

Message 2 of 7
StartingOver10
Moderator Emerita

Re: Buying a home and two cars?

Agree with Yes-its-me. 

 

Get your home mortgage first. Wait on the vehicle(s) until you close on your new home.

 

Otherwise it could show as a "run up of credit" if you get the vehicles first - which would negatively impact the home loan. In fact, it could be a denial.  The two new car payments will impact what you can borrow anyway - so don't do it. I have seen many people turned down for home mortgages because of car payments. smh

Message 3 of 7
Appleman
Valued Contributor

Re: Buying a home and two cars?

Agreed, get the house closed.

 

IF your DTI supports it you could do one car now BUT with the blessing of the person who is working your loan.

 

Make sure you have a place to sleep and park the cars. After that enjoy and get your vehicles.

Message 4 of 7
Anonymous
Not applicable

Re: Buying a home and two cars?

Ideally you don't want to add any debt in the few months before you go to buy a house.  If you have room in your debt to income ratio and you need a car you can certainly buy one and the lender is not going to hold it against you because you need transportation for work.  Once you start escrow you cannot touch anything at all so during that period the answer is no way but before you need a car to work but make sure you plan carefully so you don't add too much debt.  

Message 5 of 7
Anonymous
Not applicable

Re: Buying a home and two cars?

Also, post this question in the mortgage section, there are several mortgage brokers and loan officers who chime in on questions so they can help you with planning your mortgage and car purchase.

 

 

Message 6 of 7
StartingOver10
Moderator Emerita

Re: Buying a home and two cars?


@Anonymous wrote:

Also, post this question in the mortgage section, there are several mortgage brokers and loan officers who chime in on questions so they can help you with planning your mortgage and car purchase.

 

 


^^^Agree here.  DTI ratios for mortgages are pretty much a hard line - unlike vehicle loans. The debt ratio allowances vary from lender to lender and program to program, but you can't go over the max like you can in a vehicle loan. 

Message 7 of 7
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